because of the length of its supply chain, which is reflected in its indirect income multiplier of $1.74.”** Kennametal’s “multiplier” is right in line with the above
findings. The company employs about 1,500 people at its six sites across Pennsylvania, and according to Cardoso, approximately three to five jobs are directly linked to each Kennametal employee in the state. Due to his ardent belief that manufacturing is the most vital part of the U.S. economy, Cardoso is an outspoken advocate of business climate reform to spur manufacturing growth and job creation. “The manufacturing industry is the largest contributor to
the middle class in the United States,” Cardoso said. “A growing manufacturing sector and more manufacturing jobs equates to a larger middle class and widespread economic growth in all sectors of our economy. But, it’s hard to grow and hire more people when you are operating in the country with the second highest corporate tax rate in the world and a legal system driven by unnecessary lawsuits. My philosophy is that if you have a company that is able to create new jobs through growth, the lower corporate taxes will be leveled out by the new taxes created from these jobs. “As an industry, manufacturers must partner with govern-
ment to create common-sense regulations that create jobs in- stead of sending them overseas,” he continued. “Technology and innovation is the key here. Through new product development and R&D, we can create a win-win scenario that creates new jobs while protecting the environment. Manufacturing is leading the recovery, and Kennametal is a great example right here in Pennsylvania.
This formula is certainly working at Kennametal as the company has continued to grow and diversify its product lines during the recession. The manufacturer grew revenues 28 percent last year and is projecting around a 10-12 percent growth rate for its current fiscal year. Kennametal’s diversified approach to growth has fueled this stability during the downturn – out of the 80,000 customers Kennametal serves, no customer accounts for more than three percent of the company’s sales.
px ** www.mrcpa.org/pdfs/News/PA_True_Commonwealth.pdf
• In 2010,Kennametal introduced Beyond Blast which is truly an innovative breakthrough in the industry. The product represents a quantum leap in productivity for Kennametal customers, deliv- ering up to 300 percent productivity improvement, depending on the application.
• By channeling coolant through the insert, Beyond Blast delivers coolant not in the general area of the cutting zone, but directly where the tool edge meets the material. This is some- thing that has never been done in the industry to date and not only improves part-production processes, but also decreases power consump- tion and improves coolant management and a manufacturing company's environmental standing.
• Kennametal has developed the WIDIA Products Group™ - a complete portfolio of milling, turning, reaming, grooving, precision hole finishing, and other precision metalworking applications. The company’s vision with WIDIA was to create a powerful portfolio of products and services that are differentiated from the Kennametal brand and could be sold through a separate channel.
With WIDIA, the company expects to
capture a growing segment of customers buying product through indirect channels, which it is es- timated will make up a future $10 billion market by the year 2015. WIDIA allows Kennametal Inc. the opportunity to truly align with its channel partners. For fiscal year 2011, WIDIA product sales increased 37 percent year-over-year, reflecting strong growth.4
7 MADE in PA 2011
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